The 74-year-old, who took a pay-cut to earn £1million-a-year after Ireland’s dreadful Euro 2012 finals campaign, is clinging on to power with Irish World Cup dreams in tatters after their costly defeat at home to group rivals Sweden on Friday night.

The former Italy and AC Milan coach is refusing to walk out on his contract, which is due to end next June, even though he admits they are now playing for third place in their qualifying group.

The favourite? Martin O'Neill could become the next Ireland manager

Ireland face Austria in Vienna Tuesday night and could still technically qualify ahead of their opponents, and the Swedes, as runners-up to group leaders Germany.

But with a trip to Munich next month, where Trapattoni will be eager to take the Irish team after also coaching there previously with Bayern, Ireland’s chances of reaching the November play-offs now seem remote.

O’Neill, who has been out of work since he was sacked by Sunderland in March, is understood to be the FAI’s preferred choice to eventually replace Trapattoni when he does go. Former internationals Roy Keane and Chris Hughton, and ex-manager and captain Mick McCarthy are also in the frame.

But former Ireland international Niall Quinn has warned that simply replacing Trapattoni is not the only answer to the malaise which has struck Ireland, who have failed to qualify for the World Cup Finals since McCarthy took them to Japan and South Korea in 2002.

Under pressure: Giovanni Trapattoni appears highly unlikely to inspire Ireland to the 2014 World Cup

He called on the FAI to assist the new manager with the formation of a youth academy which will help develop talented players before they join clubs in England.

Quinn, who appointed O’Neill as Sunderland boss when he was chairman at the Stadium of Light, said: 'Money has to go into an elite academy. There needs to be a six-year programme put in place to get Ireland back up to the levels of 20 years ago, to when we could and did compete. At the moment, there’s a reliance on getting into the top Premier League clubs, but it’s just not happening. You think back to the great Irish players at Manchester United - Roy Keane, Paul McGrath - and at Liverpool.

'More recently, Damien Duff has been at Chelsea, Steve Finnan at Liverpool, Robbie Keane at Liverpool and Tottenham Hotspur, but now those clubs, by and large, aren’t even taking young Irish players. The pool is so much smaller, so we have to deliver change ourselves. We have to make sure our players are better equipped and in better shape if and when they move to England.

In contention? Roy Keane or former boss Mick McCarthy, who was a success, have also be linked

'When Trapattoni started, he had Shay Given, Robbie, Damien, Richard Dunne and John O’Shea, players of real quality, and all of them at the peak of their careers. The next manager won’t and in some ways will be snookered before the off. If anybody thinks our problems will be solved simply by the appointment of a new man, then they need their heads examined.

'The reality is that we should expect a long time in the wilderness if we don’t realise that we have to prepare young players better for top-flight clubs, players who can hold their own in England. There needs to be a long-term plan and I would like to see the appointment of the next manager reflect that, to be someone who will buy into that and to be given time, without the threat of the sack.'

Trapattoni, who arrived in Vienna Sunday night ahead of Tuesday's Group C clash, has admitted he will neither seek, nor expect, a new deal when his current contract runs out in June.

But he is keen to stay the distance until the summer, knowing it would cost the FAI around £800,000 to pay his contract up in full now.

Safe pair of hands? Chris Hughton could also be considered for the job

A plus for the FAI is the indication from businessman Denis O’Brien to continue contributing towards the salaries of the Irish management team. And they will be eager to make a new appointment in advance of the Euro 2016 finals draw on February 23 in Nice.

Asked might he step down on Tuesday if qualification is gone to allow a successor time to prepare for the starts of 2016 European Championships, Trap shrugged: ‘If a new manager is available – that’s a problem for the FAI. I am happy to finish my job and continue for six months.’

He added: ‘I thought until Friday we could also qualify for the World Cup. Now, maybe, the third position could be a good result for us.

‘I don’t expect, after this campaign, to go up again (with Ireland) in the future.

‘Even if we achieved the successful World Cup result, after Brazil I don’t think about continuing.’

Exit: Defeat to Sweden left Ireland on the brink of elimination from the World Cup

‘Because, after five years I think we have achieved a good result. We change the team, we improve ranking; we move on players and discover many others.’

With Glenn Whelan ruled out with a hamstring injury, Stephen Quinn was drafted into the squad ahead of Hull City team-mate David Meyler who was on stand-by.

Jon Walters (ankle) is another chief injury concern and, like Richard Dunne who was rested after the exertions of Friday night, he missed training before the team left Dublin.